UK Pensions: what's new this week - March 10, 2025

DWP 'actively considering' whether to give a legislative fix for Virgin Media

The Pensions Minister, Torsten Bell, has responded to questions on whether the DWP will introduce regulations to help schemes with issues following the Virgin Media decision (which held that certain amendments made by schemes that were contracted-out on a section 9(2B) basis between 1997 and 2016 are void unless a necessary actuarial confirmation was provided), and what they have done to assess the impact for schemes and employers.

The response notes that the DWP is liaising with pension schemes and industry representatives about the impacts of the decision. It recognises that where schemes do not have a way to demonstrate that historic benefit changes met the reference scheme test, this could lead to uncertainty and additional costs. It states that no final decisions have been made but the DWP is actively considering its next steps and will provide an update in due course.

Read the Minister’s responses to questions on legislative changes and on impact assessment.

TPR publishes Data Strategy

The Pensions Regulator (TPR) has published its new Data Strategy, which is part of its overarching Digital, Data and Technology strategy (a five-year plan to drive the adoption of the latest technologies and standards for data). TPR is challenging schemes to raise standards around data. It notes that data is becoming increasingly important with the approaching dashboards connection deadlines and trend towards scheme consolidation.

The strategy focuses on three key areas:

• Building strong foundations: this includes setting clear, open standards for data management and record- keeping. This will make it easier to share and use data from different places and encourage competition and innovation. TPR will also give clear expectations for data skills and fluency across the industry. TPR expects that schemes that have not yet fully digitised their data will do so.
• Taking a wider data approach and reducing regulatory burden: TPR aims to reduce the regulatory burden by moving away from form-based data entry to a system of more open data exchange, with scheme systems ‘talking’ to TPR’s systems and sharing information. TPR intends to develop an internal data ‘marketplace’ where it can access relevant data from one central location, linked to the government’s National Data Library and the wider external data ecosystem. Its aim is to need to ask for data only once.
• Focusing on adding value: ensuring that all the data collected by TPR is directly related to good saver outcomes and supports efficient and effective regulation, competition, and industry innovation.

The strategy also encourages schemes to engage with new technologies, in particular highlighting the potential of AI to reshape financial markets and the pensions landscape, introducing new opportunities and risks.

Read the data strategy and accompanying press release.

HMRC: Latest Pensions Schemes Newsletter

HMRC has published its latest Pension Schemes Newsletter (no.167), providing updates on:

• Migration to the Managing Pension Schemes service (MPSS): HMRC reminds administrators that returns for the 2024/25 tax year onwards must be submitted on the MPSS. Administrators are encouraged to migrate their pension schemes to the MPSS and the Newsletter includes guidance on migration.
• EEA Overseas Pension Schemes (OPS) and Recognised Overseas Pension Schemes (ROPS): the Newsletter explains the conditions that schemes established in the EEA will need to meet to be an OPS and ROPS from 6 April 2025, to bring them in line with schemes established in the rest of the world. HMRC will write to scheme managers of EEA QROPS in April asking them to confirm that they meet these conditions.
• Reporting a pension commencement excess lump sum (PCELS) and stand-alone lump sum (SALS): the Newsletter gives guidance on payroll set-up and provision of P45s if reporting a PCELS or SALS.
• Relief at source processes: changes to the need for wet ink signatures on form declarations and an update that the digital relief at source service will not be available until April 2028 at the earliest.

Read the Newsletter.

Pensions Academy Online, 11 and 13, March, 2025: Last chance to register

Our next Pensions Academy Online webinars will take place this week, on Tuesday 11 and Thursday 13 March 2025. Each webinar begins at 9:30am and will last approximately one hour. Use the link below to register for:

• Cyber risks and mitigations in the pensions world – Tuesday 11, March: members of our specialist cyber team will share insights on mitigating the risks (and, in the worst-case scenario, dealing with the aftermath) of cyber breaches. How can pension scheme trustees be better equipped to deal with this pervasive and ever-evolving threat?
• Legal update – Thursday 13, March: we’ll round up all the latest developments and outline what’s on the pensions horizon.

Click here to register for either or both of our Pensions Academy webinars